Ventas Reports 2016 Third Quarter Results

Enhanced Portfolio Through $1.5 Billion Life Science and Innovation
Real Estate Acquisition Leased by Leading Universities, Academic
Medical Centers and Research Institutions

Commitment to Grow High-Quality Hospital Business

Updated and Improved 2016 Guidance

CHICAGO–(BUSINESS WIRE)–$VTR–Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) today announced
strong earnings for the third quarter ended September 30, 2016, driven
by the Company’s high-quality healthcare and senior living properties
and accretive investments:

Income from continuing operations per diluted common share for the
third quarter 2016 grew 223 percent to $0.42 compared to the same
period in 2015. The increase from the third quarter 2015 is
principally due to accretive investments, improved property
performance, and lower transaction costs.

Normalized Funds From Operations (“FFO”) for the third quarter 2016
grew 5 percent to $1.03 per diluted common share on a comparable basis
(“Comparable”), which adjusts all prior periods for the effects of the
successful spin off (the “Spin-Off”) of Care Capital Properties, Inc.
(“CCP”) (NYSE: CCP) completed in August 2015.

Reported FFO per diluted common share, as defined by the National
Association of Real Estate Investment Trusts (“NAREIT FFO”), for the
third quarter 2016 grew 28 percent to $1.00 compared to the same
period in 2015.

Strong Quarter Demonstrates the Ventas Advantage

“We are delighted to report strong financial performance in the third
quarter, delivered by our excellent people, platforms and properties,”
said Chairman and Chief Executive Officer Debra A. Cafaro. “With
superior earnings growth, outstanding liquidity, financial strength,
terrific capital markets execution and disciplined capital allocation,
the Ventas team continues to deliver on our promise of producing
reliable growth and income from a high-quality diversified portfolio.
The completion of our acquisition of life science and innovation centers
leased by leading universities and our commitment to finance Ardent’s
expansion and build an excellent hospital business further solidify our
position as the premier provider of capital at the intersection of
health care and real estate. We remain confident in our ability to
continue to drive shareholder value.”

Third Quarter Portfolio Performance

Constant currency cash net operating income (“NOI”) growth for the
Company’s quarterly same-store total portfolio (1,184 assets) was 2.4
percent on a reported basis for the third quarter 2016. Reported
quarterly same-store results by segment follow:

In October 2016, the Company announced that it issued a commitment to
provide secured debt financing in the amount of $700 million to a
subsidiary of Ardent Health Services (“Ardent”) in connection with
Ardent’s agreement to acquire LHP Hospital Group. The transaction is
expected to be accretive and close in the first quarter of 2017,
pending customary regulatory reviews and approvals.

In September 2016, the Company completed its accretive acquisition of
institutional-quality life science and innovation centers managed by
Wexford Science & Technology, LLC (“Wexford”) for total consideration
of $1.5 billion. The acquisition marks Ventas’s entry into the
attractive life science sector with high-quality real estate leased by
top universities, academic medical centers and research companies and
includes a pipeline of attractive near-term development opportunities.

During and immediately following the quarter, to fund the Wexford
acquisition, Ventas raised over $900 million in aggregate gross
proceeds from the sale of common stock at an average gross price
exceeding $73 per share through a block equity offering and “at the
market” equity issuances. Year-to-date, total equity issuances have
totaled 18.9 million shares and $1.3 billion in aggregate gross
proceeds.

The Company issued $450 million of 3.25 percent 10-year senior notes
in September, which represented the most attractive 10-year bond
issuance in the Company’s history.

During and immediately following the quarter, the Company sold real
estate assets and received final repayment on loans receivable for
aggregate proceeds of $197 million. Year-to-date, the Company has sold
14 properties and received final repayment on loans receivable for
aggregate proceeds of $272 million.

39 percent total indebtedness to gross asset value, an improvement
of one percentage point from the prior quarter and three
percentage points year-over-year; and

4.7x fixed charge coverage, an improvement of 0.1x from the prior
quarter and 0.3x year-over-year.

The Company currently has an outstanding liquidity position, with $1.8
billion available under its revolving credit facility and $134 million
of cash or cash equivalents.

Collaborative Agreements with Sunrise

In September 2016, Ventas and Sunrise Senior Living (“Sunrise”)
reached mutually beneficial agreements that strengthen the decade-long
relationship of the companies. These new arrangements provide Sunrise
and its onsite employees with long-term stability, reinforcing their
focus on caring for seniors, and align the companies behind profitable
growth. The agreements reduce management fees paid by Ventas to
Sunrise under existing management contracts, maintain the existing
term of the contracts and provide Sunrise with incentives for future
outperformance. Ventas and Sunrise have also entered into a new
multi-year development pipeline agreement that gives Ventas the option
to fund certain future Sunrise developments.

Continued Leadership Excellence

Ventas Chairman and Chief Executive Officer Debra A. Cafaro was
recognized by the Harvard Business Review as one of “The
Best-Performing CEOs in the World.” She is one of 30 CEOs named to the Harvard
Business Review list for three consecutive years and one of only
two women on this year’s list. Ventas’s financial performance ranked
in the top 30 of 886 companies globally for Ms. Cafaro’s tenure, which
exceeds 17 years.

Ventas Chairman and Chief Executive Officer Debra A. Cafaro was
recognized by Modern Healthcare as one of the “100 Most
Influential People in Healthcare” for 2016. This is the third time Ms.
Cafaro has received this recognition, demonstrating her commitment to
and stature in the healthcare industry.

Updated 2016 Guidance

The Company updated and improved its expectations for full year 2016
constant currency cash NOI growth for the 1,044 assets in the full year
same-store pool to now range from 2.5 to 3 percent in 2016, compared to
its previously disclosed guidance of 2 to 3 percent.

Ventas also increased its outlook for 2016 income from continuing
operations per diluted share to now range between $1.51 and $1.63. The
Company expects reported normalized FFO per diluted share to now range
between $4.10 and $4.13, an increase of nearly 3 cents at the midpoint
and now representing 4 to 5 percent per share growth over 2015 on a
Comparable basis. The Company also increased its NAREIT FFO per diluted
share expectations to range between $4.09 and $4.13.

The Company continues to expect to complete approximately $500 million
in total 2016 dispositions; it has already closed $272 million
year-to-date. Consistent with its practice, the Company’s guidance does
not include any further material investments, dispositions or capital
activity. A reconciliation of the Company’s guidance to the Company’s
projected GAAP earnings is included in this press release.

The Company’s guidance is based on a number of other assumptions that
are subject to change and many of which are outside the control of the
Company. If actual results vary from these assumptions, the Company’s
expectations may change. There can be no assurance that the Company will
achieve these results.

Third Quarter Conference Call

Ventas will hold a conference call to discuss this earnings release
today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The dial-in
number for the conference call is (844) 776-7841 (or (661) 378-9542 for
international callers). The participant passcode is “Ventas.” The
conference call is being webcast live by NASDAQ OMX and can be accessed
at the Company’s website at www.ventasreit.com.
A replay of the webcast will be available following the call online, or
by calling (855) 859-2056 (or (404) 537-3406 for international callers),
passcode 96801614, beginning at approximately 2:00 p.m. Eastern Time and
will remain for 36 days.

Ventas, Inc., an S&P 500 company, is a leading real estate investment
trust. Its diverse portfolio of approximately 1,300 assets in the United
States, Canada and the United Kingdom consists of seniors housing
communities, medical office buildings, life science and innovation
centers, skilled nursing facilities, specialty hospitals and general
acute care hospitals. Through its Lillibridge subsidiary, Ventas
provides management, leasing, marketing, facility development and
advisory services to highly rated hospitals and health systems
throughout the United States. More information about Ventas and
Lillibridge can be found at www.ventasreit.com
and www.lillibridge.com.

This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.All
statements regarding the Company’s or its tenants’, operators’,
borrowers’ or managers’ expected future financial condition, results of
operations, cash flows, funds from operations, dividends and dividend
plans, financing opportunities and plans, capital markets transactions,
business strategy, budgets, projected costs, operating metrics, capital
expenditures, competitive positions, acquisitions, investment
opportunities, dispositions, merger or acquisition integration, growth
opportunities, expected lease income, continued qualification as a real
estate investment trust (“REIT”), plans and objectives of management for
future operations and statements that include words such as
“anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,”
“may,” “could,” “should,” “will” and other similar expressions are
forward-looking statements.These forward-looking statements are
inherently uncertain, and actual results may differ from the Company’s
expectations.The Company does not undertake a duty to update
these forward-looking statements, which speak only as of the date on
which they are made.

The Company’s actual future results and trends may differ materially
from expectations depending on a variety of factors discussed in the
Company’s filings with the Securities and Exchange Commission.These
factors include without limitation: (a) the ability and willingness of
the Company’s tenants, operators, borrowers, managers and other third
parties to satisfy their obligations under their respective contractual
arrangements with the Company, including, in some cases, their
obligations to indemnify, defend and hold harmless the Company from and
against various claims, litigation and liabilities; (b) the ability of
the Company’s tenants, operators, borrowers and managers to maintain the
financial strength and liquidity necessary to satisfy their respective
obligations and liabilities to third parties, including without
limitation obligations under their existing credit facilities and other
indebtedness; (c) the Company’s success in implementing its business
strategy and the Company’s ability to identify, underwrite, finance,
consummate and integrate diversifying acquisitions and investments; (d)
macroeconomic conditions such as a disruption of or lack of access to
the capital markets, changes in the debt rating on U.S. government
securities, default or delay in payment by the United States of its
obligations, and changes in the federal or state budgets resulting in
the reduction or nonpayment of Medicare or Medicaid reimbursement rates;
(e) the nature and extent of future competition, including new
construction in the markets in which the Company’s seniors housing
communities and medical office buildings (“MOBs”)are located;
(f) the extent of future or pending healthcare reform and regulation,
including cost containment measures and changes in reimbursement
policies, procedures and rates; (g) increases in the Company’s borrowing
costs as a result of changes in interest rates and other factors; (h)
the ability of the Company’s tenants, operators and managers, as
applicable, to comply with laws, rules and regulations in the operation
of the Company’s properties, to deliver high-quality services, to
attract and retain qualified personnel and to attract residents and
patients; (i) changes in general economic conditions or economic
conditions in the markets in which the Company may, from time to time,
compete, and the effect of those changes on the Company’s revenues,
earnings and funding sources; (j) the Company’s ability to pay down,
refinance, restructure or extend its indebtedness as it becomes due; (k)
the Company’s ability and willingness to maintain its qualification as a
REIT in light of economic, market, legal, tax and other considerations;
(l) final determination of the Company’s taxable net income for the year
ending December 31, 2016; (m) the ability and willingness of the
Company’s tenants to renew their leases with the Company upon expiration
of the leases, the Company’s ability to reposition its properties on the
same or better terms in the event of nonrenewal or in the event the
Company exercises its right to replace an existing tenant, and
obligations, including indemnification obligations, the Company may
incur in connection with the replacement of an existing tenant; (n)
risks associated with the Company’s senior living operating portfolio,
such as factors that can cause volatility in the Company’s operating
income and earnings generated by those properties, including without
limitation national and regional economic conditions, costs of food,
materials, energy, labor and services, employee benefit costs, insurance
costs and professional and general liability claims, and the timely
delivery of accurate property-level financial results for those
properties; (o) changes in exchange rates for any foreign currency in
which the Company may, from time to time, conduct business; (p)
year-over-year changes in the Consumer Price Index or the UK Retail
Price Index and the effect of those changes on the rent escalators
contained in the Company’s leases and the Company’s earnings; (q) the
Company’s ability and the ability of its tenants, operators, borrowers
and managers to obtain and maintain adequate property, liability and
other insurance from reputable, financially stable providers; (r) the
impact of increased operating costs and uninsured professional liability
claims on the Company’s liquidity, financial condition and results of
operations or that of the Company’s tenants, operators, borrowers and
managers, and the ability of the Company and the Company’s tenants,
operators, borrowers and managers to accurately estimate the magnitude
of those claims; (s) risks associated with the Company’s MOB portfolio
and operations, including the Company’s ability to successfully design,
develop and manage MOBs and to retain key personnel; (t) the ability of
the hospitals on or near whose campuses the Company’s MOBs are located
and their affiliated health systems to remain competitive and
financially viable and to attract physicians and physician groups; (u)
risks associated with the Company’s investments in joint ventures and
unconsolidated entities, including its lack of sole decision-making
authority and its reliance on its joint venture partners’ financial
condition; (v) the Company’s ability to obtain the financial results
expected from its development and redevelopment projects; the impact
of market or issuer events on the liquidity or value of the Company’s
investments in marketable securities; (x) consolidation activity in the
seniors housing and healthcare industries resulting in a change of
control of, or a competitor’s investment in, one or more of the
Company’s tenants, operators, borrowers or managers or significant
changes in the senior management of the Company’s tenants, operators,
borrowers or managers; (y) the impact of litigation or any financial,
accounting, legal or regulatory issues that may affect the Company or
its tenants, operators, borrowers or managers; and (z) changes in
accounting principles, or their application or interpretation, and the
Company’s ability to make estimates and the assumptions underlying the
estimates, which could have an effect on the Company’s earnings.